Effective notice before best judgment assessment is essential where the assessee's address details are already on record.

Failure to serve effective notice before a best judgment assessment can invalidate the proceedings where the assessee's available registration details are already on record. The court noted that the department's notice was returned with an endorsement of non-existence of the firm, yet the assessee had furnished address particulars in Form No. I under Rule 17(7) of the Kerala Value Added Tax Rules. Since the authorities had those details, they were expected to verify and use them before proceeding, particularly because the assessment could have penal consequences. The proceedings were set aside for breach of natural justice and remanded for fresh consideration after the assessee's representative appeared.

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Issues: Whether the assessment proceedings were liable to be set aside for failure to serve notice effectively before making a best judgment assessment.

Analysis: The Department's notice had been returned with the endorsement that there was no such firm, yet the record showed that the assessee had furnished registration details, including the address particulars contained in Form No. I under Rule 17(7) of the Kerala Value Added Tax Rules. When the authorities were in possession of the assessee's available record, they ought to have verified and used those details for service before proceeding further, especially since the proposed assessment could entail penal consequences. The denial of effective notice and opportunity of hearing rendered the proceedings vulnerable on the ground of breach of natural justice.

Conclusion: The assessment proceedings were set aside and the matter was remanded to the respondent for fresh consideration after appearance of the assessee's representative.

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